consumer buying behavior. three types of decision making process extended problem solving- a...

Consumer buying behavior

Three types of decision making process

• Extended problem solving-

• A purchase decision process in which

customers devote considerable time and

effort to analyze the alternatives.

• Undertaken in case of

• Financial risk

• Physical risk

• Social risk

• When the decision is going to satisfy an important need

• Little knowledge

• Usually in this type of problem solving-people go beyond their personal knowledge and consult relatives, friends, internet, retailers.

Limited problem solving

• Moderate amount of effort and time

• Risk is moderate and some prior experience

• Rely more on personal knowledge

• Our majority decisions come under this category

• Impulse buying- buying decision made on spot

after seeing the merchandize.

• 70% of supermarket purchase is impulse buying

Habitual decision making

• Requires no conscious effort

• Brand loyalty or store loyalty

• Usually reluctant to switch if the

favorite brand is not available.

• Brand loyalty both an opportunity

and problem for retailers

The buying process

• Need recognition- recognize an unsatisfied

need.

Types of need

1.Functional need- also called rational need

2.Psychological need- also called emotional

need, increases with income

Information search

• Characteristic of need• Characteristic of customer• Competing brands• Time pressure

• Role of retailer

evaluation OF ALTERNATIVES

• YOU USUALLY EVALUATE THE PRODUCT AND THE RETAILER TOGETHER

PURCHASE THE MERCHANDIZE

POST PURCHASE EVALUATION

• EVALUATES IF THE PURCHASE WAS SATISFACTORY

OR UNSATISFACTORY

• SATISFACTION IS WHEN THE POST CONSUMPTION

EVALUATION MEETS OR EXCEEDSTHE CUSTOMER

EXPECTATION.

• THIS BECOMES A PART OF CUSTOMERS INTERNAL

INFORMATION THAT EFFECTSFUTURE STORE AND

PRODUCT DECISION.

• REINFORCEMENT OF SATISFACTION CAN LEAD TO

STORE LOYALTY.